>>61085613
They went bust a long time ago. You can't recapitalize banks with liquidity. Back in 2008, I think almost HALF of all loans given out by commercial banks were for housing. They also had trillions of mortgages securitized and sold off to Fannie and Freddie and offloaded onto foreign pension funds and etc. In a healthy economy, you have to be able to go bankrupt for making bad loans. They gave themselves an $800BN bailout, but that's not enough to paper over the exposure they had to a $50TN housing market. All you can do at that point is to continue adding more and more leverage and credit in the system to keep these prices high. This was always going to end in a crash. The banks were dead back in 2008 (they ruined the fed balance sheet by buying up toxic bonds) and now all they can do is parasitically try to scrape out capital from the real world. They were no longer solvent and making good decisions to possibly help the economy. Now they needed to grab profits to stay alive and it didn't matter if they were being short sighted and destructive in the process.
Trying to build amazon to replace brick and mortar retail through shorting is one of the ways they seem to be trying to profit from the downsizing of the American economy.